Surely people have to rent somewhere if they don't buy a friggin house.... Rex I admire your British stiff upper lip in the face of adversity and over whelming odds.... we built an empire on it....
However arguing lower house price don't matter is a tough one.... what about the UK building firms laying of hundreds of people? Estate agents? Lawyers/solicitors, surveyors, etc etc... lower house prices = lower activity.... it impacts the economy in many many ways.
Look at the evidence...
Consumer retail sales numbers plummeting
Consumer confidence weakest in years.
Banks can't lend because no-one will lend to them
Unemployment rising.
I respect your opinion but just can't see the logic in the point you are trying to make other than "recessions happen because the media puts everyone in a bad mood"??